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Isle of Capri Liable for $4.5 Million in Damages

The company has filed a motion in the United States District Court for the Eastern District of Missouri seeking to vacate the arbitration award. Notwithstanding the motion to vacate, the company is required by FASB Statement No. 5, "Accounting for Contingencies," to record the entire loss contingency during the quarter ended October 27, 2002. The company has therefore accrued an additional $1.8 million as a result of this award as of October 27, 2002 (the last day of the company's second fiscal quarter), in addition to the $2.7 million previously accrued.

Accordingly, the company has revised net income for the quarter ended October 27, 2002, for the additional $1.8 million pre-tax accrual. For the three months ended October 27, 2002, net income, net income per common share-basic and net income per common share-diluted changed from $7.9 million, $0.27 and $0.26, respectively, to $6.8 million, $0.24 and $0.22, respectively. For the six months ended October 27, 2002, net income, net income per common share-basic and net income per common share-diluted changed from $20.1 million, $0.70 and $0.66, respectively, to $19.0 million, $0.66 and $0.62, respectively. These changes are reflected in the company's Form 10-Q for the quarter ended October 27, 2002, that was filed today.

Isle of Capri Casinos, Inc. owns and operates 13 riverboat, dockside and land-based casinos at 12 locations, including Biloxi, Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake Charles (two riverboats), Louisiana; Black Hawk, Colorado; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. The company also operates Pompano Park Harness Racing Track in Pompano Beach, Florida.

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